crane hire charges payments tds to deducted as per contractor 194C. or under Sec 194I
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After an amendment in 2007 in section 194I, rent on plant, machinery or equipment is subject to TDS at the rate of 10%. Therefore, crane hire charges is subject to TDS under section 194I.
It is not clear from querry that whether you have hired a crane or you have entred in contact. If the assests is in your control and you are oprateing the same then it will cobvreed U/S 194I or if you have given a some work to a contractor and the control of assests is also with him then it will covred U/S 194C
crane hire charges payments tds to deducted from contractor including service tax or excluding3
Yes Even in our construction company we deduct 2% TDS on gross amount (Including ST or VAT) on Crane Hire Charge u/s 194I, as crane is coming under plant & machinery.
If u contract from Xyz with contract paper then 194c will applicable otherwise section 194I
Even then you cant avoid the section 194I as it is a specifically meant for rental or hire charges.
if it is a "contract for work" using the crane and the crane is operated by the person who hires it to you, then the transaction will attract TDS u/s 194C at 2%
On the other hand, if it is hire of crane simpliciter, ie, the crane is given in your possession and control and you operate it, it will attract TDS u/s 194I
Thanks for all Experts.